Why Canada’s affordability recovery could go into reverse
In Toronto, only 156 condominium units were started within the city in the first half of 2026, compared with an average of roughly 7,000 annually over the previous decade.
The city still needs to increase its annual pace of housing starts by at least 50% over the next decade to return to 2019 affordability levels.
In Vancouver, condominium apartment starts — the region’s primary source of new ownership units — fell a further 40% in the first half of 2026, their weakest level since 2011. Purpose-built rental apartments now accounting for about 60% of starts, up from less than 20% a decade ago.
Montreal’s cost-to-income ratio has climbed from 34% to 48% since 2019, its highest level since the 1990s, and the city needs between 42,000 and 56,000 additional annual starts to restore pre-pandemic affordability.
Ottawa’s supply gap has also widened, with the region requiring between 22,000 and 27,000 additional housing starts annually.
